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A Customs Union has before now, 1.8. Germany, paved the
way for a political union; and it may be that Chinese
have this in mind.
If there is to be an agreement I do not think
Either it is
it should be a matter of bargaining.
desirable on its own merits and in the interests of our
general policy towards China as well as those of the
colony or it is not. And that can only be decided by
His Majesty's Government after full consideration of all
the facts at issue which hitherto have tended to become
obscured by the extraneous consideration of what we can
get in return for allowing customs to function in
Hongkong.
Repeated to Hongkong and Canton.